On Monday, Emirates and Etihad Airways signed a security pact to share information and intelligence, the first agreement between the two rival airlines based in the United Arab Emirates (UAE).
Emirates and Etihad, backed by their state owners, have competed almost head-to-head in developing global networks from their respective hubs in Dubai and Abu Dhabi, which are just 128 kilometers apart.
The government of Dubai owns Emirates, and the government of Abu Dhabi owns Etihad.
According to an Emirates statement, Monday’s memorandum of understanding involves Emirates unit Emirates Group Security and Etihad parent Etihad Aviation Group working “together on operational areas both within and outside the UAE. ”
Emirates President Tim Clark and Etihad’s new Group Chief Executive Tony Douglas signed the agreement agreement.
Clark told Reuters on Oct. 11 that Emirates was open to working with Etihad, including on procurement.
“I think there is value to be had working more closely with them,” Clark said in October.
Emirates and Etihad face common challenges: a lobbying campaign in the United States to investigate accusations that they are unfairly state-subsidized, which they both deny, overcapacity, security concerns, and a drop in regional business travel.
Under Monday’s agreement, Emirates Group Security will provide security and training programs to Etihad and help develop their security escort capability.
Emirates is the largest Middle East airline, and the younger Etihad unsuccessfully spent billions trying to catch up by buying stakes in more than half a dozen operators around the world. Its most high-profile investments, Air Berlin and Italy’s Alitalia, filed for administration last year, contributing to Etihad’s falling into the red in 2016 for the first time since 2010.
Emirates started developing closer ties with fellow Dubai state-owned carrier Flydubai last year.
